Trade setup for 4th May

 Yesterday was another volatile Monday. Not sure what happens to markets on Mondays. Every Monday it seems that markets are very volatile. Yesterday it fell close to 200 points and recovered everything to close in the green. 

Banknifty fell close to 1000 points and recovered more than 700 points. At closing, it lost around 300 points only.

Yesterday, the PMO announced that they have decided to use medical students, interns,  nursing students for managing covid in hospitals under supervision. This is one of the suggestions which was given by Devi Shetty and it is good that the govt has considered that.

 Bill gates and Milinda gates have decided to diverse after 27 years of marriage. This was surprising. They are running the largest philanthropic organisation.

RBI has put a penalty of 3cr on ICICI bank. This may not be very bad news as 3cr is not a very huge penalty.

 Biden has increased the number of refugees in the US after a lot of criticism for following a Trump-like administration. 

As I told before, the results of the companies were good but the stocks are going to fall. Reliance, Kotak, IndusInd bank came out with results. But the stock price fell after the results. But the surprising part is that index management is happening. So you are not seeing a major fall in the index. I feel that this cannot go on for a long time and very soon even the index will have to go down.

The best part was the Sun TV. After a massive victory of DMK, everyone thought that sun tv would shoot up. But it fell close to 7%. Last week it had shot up 20% which had probably factored in the election result. After the result, there was a huge profit booking. Today's movement will be important. If it falls and breaks the previous week low in some time then the upmove was just a trap.

Verizon which bought yahoo is now selling it. 

Warren buffet has decided his successor at Berkshire Hathaway. 

Markets are going to be in the range, but the range is wide. It is from 14k to 15k. Just follow a simple strategy. Sell at the upper end and buy at the lower end. 


  1. Yesterday I was able to make an intraday profit of around 40 thousand. Nowadays, its very easy. Monday's are volatile. So at the opening when there was gap-down, I bought nifty futures and in the second half it recovered and I was able to close them in profit.
  2. Most of my trades are in wonderful profit.
  3. In my Zerodha account, I have executed a short strangle. The trade was shared in my telegram channel as well.
    1. -1 X14k
    2. -1 X 15k
  4.  The jsw steel trades is also in profit. I am already sitting with a 3% profit in less than a week.
  1. Yesterday the US markets closed in the green. Dow gained around 250 points. Nasdaq however closed in the red.
  2. European markets closed in the green. 
  3. Today the Asian markets are in the red. China and Japan are closed. SGX is suggesting a mild downtick. 
  1. FII sold for 2289cr and DII bought for only 550cr. I wonder what helped the markets for such a massive recovery in the second half yesterday.